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When salespeople don’t perform at their best, leaders often point fingers at sales compensation or strategy – but these sorts of problems often stem from the company’s sales structure. Though it’s very important to craft a complex sales force structure that supports company growth, 9 out of 10 sales organizations are struggling to find the sales structure that best suits their particular needs. Practically speaking, most organizations use some hybrid of the sales organization structures I’ll outline here, with sales force size and market segmentation serving as prime considerations. Every sales force structure has its own set of pros and cons, so it’s important to form a structure that supports your company’s goals. Geographic Organizational StructureThis is also known as territorial sales force structure, and it means that the organization assigns each sales rep to a certain geographic area. Advantages: • Low cost Disadvantages: • Sales reps have a hard time developing product or market specialization (unless the
organization commits to specialized sales forces allocated by geography) Product Sales Force StructureIn this alignment, the sales force’s area of responsibility is defined by the products or product groups, ignoring geographical lines. Advantages: • Sales
reps develop product expertise Disadvantages: • Higher costs due to duplication of efforts within geographies and customer accounts Market-Based StructureThis is also known as customer sales force structure, and it means that sales reps are grouped by customer or industry. Advantages: • Sales reps understand the needs of their customers and build stronger relationships Disadvantages: • Higher costs Functional StructureIn this structure, responsibilities are divvied up according to everyone’s place in the sales process – inside sales, account managers, product specialists, and so on. Advantages: • More efficient selling activities Disadvantages: • Geographic duplication Your Company Needs the Right Sales StructureAccording to a Harvard Business Review survey, high-performing sales organizations have well-documented and explicitly structured sales processes. A clearly documented sales structure helps streamline the chain of command, and the increased transparency leads to more efficient decision-making. Selecting the right sales force structure and documenting it thoroughly provides a host of organizational benefits:
Now you’re ready to start building the unique sales management structure that best fits your organization – helping you improve performance, adapt your sales compensation strategy, and drive sales growth.
What are the four types of sales force?Each one has its own pros and cons that you should consider before implementing any of the structures in your business.. Functional Structure.. Geographic Structure.. Market-Based Structure.. Product Sales Force Structure.. Which type of sales force training is the most popular type of training quizlet?An ongoing process. On-the job training is the most popular type of training. Formal classes, seminars, and computer based training are also popular.
When salespeople are assigned specific types of customers and are required to satisfy all needs of these customers this is referred to as?Specialization. You just studied 180 terms! 1/180.
Which is the simplest sales force organizational structure?Dividing your sales force by geographic region is the simplest approach.
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